What are the steps required to place a company into a Creditor's Voluntary Liquidation?
The appointment of Liquidators was made simpler and quicker on 1 January 2008. In fact, a company can now be placed into Liquidation virtually immediately and not the 8-10 days it used to take.
The steps required to place the company into Liquidation under a Creditor's Voluntary Liquidation include;
* Directors meeting - held immediately - this meeting recognises the insolvency of the company and calls the necessary Special General meeting of members/shareholders that will appoint a liquidator.
* Consent to Short Notice - this notice is required to be signed by 95% of members/shareholders if they are to shorten the usual convening period for an Special General Meeting of members/shareholders from 21 days to being able to be held immediately.
* Special General Meeting of Members/Shareholders - this meeting recognises the insolvency of the company and passes a resolution appointing the liquidators.Â
At this point the Liquidator is appointed and is required, within 11 days of his appointment, to convene a meeting of creditors.
The liquidator convenes the meeting of creditors by advertising the meeting in a daily newspaper circulated in each state in which the company traded and also by way of direct contact with the creditors of the company.
* What information does the liquidator send to creditors?
